Bhushan Akolkar
AVAX, the native cryptocurrency of the Layer One blockchain network Avalanche, is making solid moves with a staggering 17% gains and entering the top ten crypto list while leaving behind the likes of Tron (TRX) and Chainlink (LINK). If the Avalanche price momentum sustains this time, it can break past $30.
Avalanche (AVAX) Price Rally
At press time, Avalanche (AVAX) is trading 16.91% up at a price of $26.65 with a market cap of $9.7 billion. With its current move, AVAX has extended its monthly gains to more than 110% with the 24-hour trading volume shooting by 52% to $1.1 billion.
the Avalanche network has witnessed a noteworthy uptick in network activity, indicating potential implications for the value of AVAX. This surge aligns with a pattern seen in the Polygon network, and the introduction of Ordinals to Avalanche emerges as a significant factor driving this trend.
The adoption of Ordinals has played a pivotal role, notably contributing to a substantial increase in transaction volumes. Recent data indicates that Ordinals minting accounted for approximately 96% of total transactions in the past week. This surge in activity has, in turn, led to heightened network fees and an increased demand for AVAX. This undermines the dynamic relationship between network utilization and the cryptocurrency’s value.
During November, several Layer-1 (L1) platforms saw substantial increases in transaction volume. Avalanche, in particular, recorded a remarkable 167% month-over-month surge, reaching $2.73 billion. This figure marks the highest transaction volume for Avalanche since July of the previous year.
The Platypus Finance Saga
Platypus Finance, operating on the Avalanche blockchain, faced a significant blow in February when an automated decentralized finance (DeFi) market maker was exploited in a flash loan attack, resulting in an 8.3 million euros loss due to coding vulnerabilities. The exploit caused Platypus’ USD-pegged stablecoin to plummet from $1 to $0.48.
Subsequent to information shared by Binance, French authorities arrested two brothers, Mohammed M. and Benamar M. Mohammed was accused of manipulating flaws in Platypus’ smart contracts to conduct an unauthorized fund transfer, while his brother received some of the proceeds, knowing they were unlawfully obtained.
In a surprising turn of events during the trial in late October, Mohammed asserted that he had executed an “ethical hack” with the intention of eventually returning most of the hacked crypto to Platypus. He anticipated a traditional “bug bounty” reward from the project, estimating around 10% of the stolen assets. Despite the unconventional claim, portraying his actions as well-intentioned but legally dubious, the French court recently acquitted both brothers of charges related to the hack.
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